Safe and Sound

LOCAL 355 MD

Started in 1962, LOCAL 355 MD is an NCUA-insured credit union headquartered in BALTIMORE, MD. As of December 31, 2017, the credit union had assets of $4.4 million.

The credit union has amassed loans and leases worth $734,347. LOCAL 355 MD's 1,705 members currently have $3.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOCAL 355 MD exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

LOCAL 355 MD scored 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

LOCAL 355 MD's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

LOCAL 355 MD scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, LOCAL 355 MD scored 6 out of a possible 30, coming in below the national average of 10.11.

One sign that LOCAL 355 MD is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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